Tax rebate - help how to complain please

hilspars

Can anyone help here. My nephew is 19 and back in january this year he was effectively made redundant from his apprenticeship in carpentry. He had been working for 9 months and the employer had taken the full amount of tax off him. He had to register as self employed in order to claim his tax back. As it was his first tax form, we went to the tax office for help and the woman there typed in the details directly into the computer. A couple of months later he got a tax form with just £19 rebate as the woman had failed to put down how much tax he was claiming back and just put in the extras - petrol etc.
We had to go back to tax office and an ammendment was faxed up to add on. This has now taken since April and they keep telling my nephew that they have to make further security checks. Meanwhile he is living on job seekers allowance and my brother ( single parent ) is trying to make do on his disability pension. There is approx £3000 owing. What can we do ?
Thanks for looking

fengirl_2

Write to the District Inspector - if no joy, write to the regional Manager.

Pumpkinface_2

hilspars wrote: »

Can anyone help here. My nephew is 19 and back in january this year he was effectively made redundant from his apprenticeship in carpentry. He had been working for 9 months and the employer had taken the full amount of tax off him. He had to register as self employed in order to claim his tax back. As it was his first tax form, we went to the tax office for help and the woman there typed in the details directly into the computer. A couple of months later he got a tax form with just £19 rebate as the woman had failed to put down how much tax he was claiming back and just put in the extras - petrol etc.
We had to go back to tax office and an ammendment was faxed up to add on. This has now taken since April and they keep telling my nephew that they have to make further security checks. Meanwhile he is living on job seekers allowance and my brother ( single parent ) is trying to make do on his disability pension. There is approx £3000 owing. What can we do ?
Thanks for looking

What do you mean by they "took the full amount of tax off him"? I am a bit puzzled as to how he could have overpaid tax by £3,000 after having worked for nine months as an apprentice carpenter. Are you certain about that figure? Also what do you mean he had to register as self employed to get the tax back? I have never had to register as self employed to get tax I have overpaid back.

hilspars

His employer gave him cash net of the full amount. i.e 200 instead of 250 for example. My nephew, being naive, thought that he was dealing with the tax on a PAYE basis. However, when we went to tax office, they said that building trade is always self employed and that the only way to claim tax back is to register as self employed and fill in a tax claim. This is then checked against what the employer has declared as taxable pay to an employee. My nephew only earned something like £1000 in the year so with personal allowance and the fact that we have had to pay his national insurance seperately, he is entitled to large rebate which they have already agreed in writing is over £3000 but have yet to pay it . That is the problem.

suso

hilspars wrote: »

His employer gave him cash net of the full amount. i.e 200 instead of 250 for example. My nephew, being naive, thought that he was dealing with the tax on a PAYE basis. However, when we went to tax office, they said that building trade is always self employed and that the only way to claim tax back is to register as self employed and fill in a tax claim. This is then checked against what the employer has declared as taxable pay to an employee. My nephew only earned something like £1000 in the year so with personal allowance and the fact that we have had to pay his national insurance seperately, he is entitled to large rebate which they have already agreed in writing is over £3000 but have yet to pay it . That is the problem.

Somethings don't add up here.

It sounds like the office was talking about the CIS system, if he was registered in the CIS then tax would have been deducted at 20 % on all the earnings. (it sounds like this happened going off the figures of 250/200) and he would have received a statement at the end of the contract showing how much tax was deducted. But for this to have taken place he would have had to supply his UTR number otherwise...
if he wasn't registed then tax would have been deducted at 30%.

Again he would have received a statement showing amount of deductions etc.

When you say he only earnt 1000.00 how do you estimate he would be entitled to 3000.00 back.

Pumpkinface_2

suso wrote: »

When you say he only earnt 1000.00 how do you estimate he would be entitled to 3000.00 back.

I wondered that too :cheesy: and decided OP might have missed a zero and meant £10,000!

If they weren't registered for the scheme and tax was deducted at 30%, then I make they overpaid tax by about £2,200. Assuming there was no other income in the year of course.